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LEHI, Utah - Owlet, Inc. (NYSE:OWLT), known for its smart infant monitoring technology, has announced its return to compliance with the New York Stock Exchange's (NYSE) market capitalization requirements. The company had previously been notified on April 4, 2023, of its non-compliance due to its market capitalization falling below the $50 million threshold, alongside a stockholders' equity deficit.
After successfully meeting the NYSE's minimum market capitalization standards for the required time period, the "below compliance" indicator has been removed from Owlet's Class A common stock listing. This change also reflects on the NYSE website, where the company is no longer listed under the below continued listing standards.
Owlet's journey to regain compliance underscores its efforts to stabilize its financial standing within the NYSE's stringent listing criteria. The company will remain under NYSE review for a 12-month follow-up period to ensure sustained compliance.
The company, which provides a digital health platform for infant monitoring, has been in operation since 2012. It offers FDA-authorized medical devices and consumer pediatric wearables, along with an integrated HD camera system. These products offer parents real-time health and wellness data and insights for their children.
Owlet's technology has reached over 2 million parents globally, contributing to a substantial collection of infant health and sleep data. The company is focused on bridging the healthcare gap from hospital to home care and delivering new insights to parents and caregivers worldwide.
This announcement is based on a press release statement from Owlet, Inc., and it reflects the company's current compliance status with the NYSE. The forward-looking statements within the press release are protected under the Private Securities Litigation Reform Act of 1995 and are subject to a number of risks and uncertainties that could affect the company's future performance.
In other recent news, Owlet Inc. has reported substantial developments. The company raised around $11.6 million in a stock offering, issuing approximately 3.1 million shares of Class A common stock. Owlet has also expanded the availability of its Dream Sock baby monitor in various European countries. Additionally, the company expanded its stock incentive plan by 400,000 shares and converted 15,721 shares of its Series A convertible preferred stock into 2,291,686 shares of Class A common stock.
These strategic moves have resulted in the company surpassing the New York Stock Exchange's global market capitalization requirement of $50 million. Owlet's second-quarter results showcased revenues of $20.7 million, exceeding the estimated $18.5 million. This financial growth was attributed to a successful Amazon (NASDAQ:AMZN) Prime Day, a new partnership with AdaptHealth (NASDAQ:AHCO) Corp., and significant international expansion.
For 2024, Owlet projects a revenue growth of approximately 40% and an expected net revenue between $37 million and $42 million in the second half of the year. The company's recent developments include a focus on driving adoption of Dream Sock and expanding into medical and healthcare channels. These are the latest developments in the company's ongoing efforts to align its executive compensation with long-term shareholder interests and ensure strong governance practices.
InvestingPro Insights
Owlet's return to compliance with NYSE market capitalization requirements is a positive development, but the company still faces financial challenges. According to InvestingPro data, Owlet's market capitalization currently stands at $55.84 million, just above the NYSE's $50 million threshold. This precarious position underscores the importance of the company's efforts to maintain compliance.
Despite the recent compliance achievement, InvestingPro Tips highlight that Owlet is "quickly burning through cash" and is "not profitable over the last twelve months." These factors may contribute to the stock's volatility, another characteristic noted by InvestingPro.
On a more positive note, Owlet has shown strong revenue growth, with a 58.15% increase in quarterly revenue as of Q2 2023. This growth aligns with the company's expanding reach in the infant monitoring market, as mentioned in the article. However, the operating income margin of -28.87% suggests that Owlet is still struggling to translate this growth into profitability.
InvestingPro offers additional insights beyond these points, with 7 more tips available for Owlet. These additional tips could provide valuable context for investors considering the company's future prospects in light of its recent NYSE compliance.
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